March 16, 2006

When Moviegoers Vote With Their Feet
By SHARON WAXMAN
NY Times

http://www.nytimes.com/2006/03/16/movies/16show.html?pagewanted=print


LAS VEGAS, March 15 — In a loud corner of the Bally's hotel convention 
floor, a dozen beefy, bare-chested men wearing chicken masks and black 
Lycra tights leapt from a wrestling ring onto the exhibition floor. It was 
a welcome distraction at the annual ShoWest convention this week, where the 
aim is to whip up enthusiasm among movie theater owners for the coming 
summer blockbusters.

Deftly stepping to avoid a flying wrestler (part of the promotion for the 
June release of a new Jack Black movie, "Nacho Libre"), Frank J. Rimkus, 
the chief executive of Galaxy Theaters, based in Sherman Oaks, Calif., 
mused on the subject preoccupying most convention attendees, namely, the 
future of American moviegoing.

"There is a general recognition that the world of entertainment is opening 
up in ways that we can't imagine today, we are launching into a whole new 
era," he said. He added, with a note of self-confession: "We are trying to 
understand what the public wants. And Galaxy does not yet have a handle on it."

The slide in American moviegoing was an open wound at the ShoWest 
convention, and was addressed with unusual directness by John Fithian, 
president of the National Association of Theater Owners, and Dan Glickman, 
chairman of the Motion Picture Association of America, in their speeches here.

The decline in attendance for three consecutive years "is a trend that must 
be reversed," Mr. Glickman declared in his address Tuesday; he still called 
himself "bullish about the moviegoing experience." A former secretary of 
agriculture, Mr. Glickman suggested that the film industry undertake 
something similar to the "Got Milk" campaign that promoted the dairy 
industry as a whole.

For his part, Mr. Fithian defended the idea of maintaining the interval 
between a movie's initial release in theaters and its later release on DVD 
and video. Most studios, he said, had come out in favor of maintaining the 
delay.

With the rising popularity of flat-screen, surround-sound home 
entertainment systems, the competition to theaters is stiffer than ever, a 
challenge at least as great as the arrival of television in the 1940's, and 
the videocassette recorder in the 1980's.

For the film industry, the trend of rising costs may also be tapering off 
as the entertainment landscape changes. Mr. Glickman cited association 
statistics that showed the average cost to make and market a film in 2005 
dipped slightly, to $96.2 million last year. The same study noted that the 
studios, which make up the association, spent more on advertising on 
network television and Internet sites and less on newspapers and local 
television.

Given the rapidly growing entertainment options for consumers, at least 
some companies spoke about short-term alternatives, like limiting 
investment in new theaters to maintain positive cash flow.

As a longer-term proposition, many exhibitors are looking to digital 
projection — the next technical leap that would do away with movie reels — 
to help catapult them past the current slump. But the arrival of digital 
projection, which had been delayed by a now resolved argument between 
studios and theater chains over who would pay for the new equipment, is 
still two to three years away, experts say.

The future of the industry, many here seemed to agree, lies with 
understanding consumer behavior toward what has been a leading 
entertainment choice for almost a century. "That's the real question: What 
do you do to stir attendance, to get people in theaters?" asked Peter C. 
Brown, chairman of AMC Entertainment, which has 4,400 screens across the 
country.

His company, which is based in Kansas City, Mo., is toying with lowering 
ticket prices for off-peak hours — something he nervously referred to as "a 
slippery slope" — and is looking to digital projectors to allow more 
flexibility in swapping films among theaters, according to changing 
audience demand.

"The movie industry needs to take a big leap forward to market itself," 
said Jeffrey Frank, president of Drexel Theaters Group, a company based in 
Columbus, Ohio, that primarily operates art houses. For several years, Mr. 
Frank has held parties for those on line for popular midnight movies, had 
Oscar night parties at his theaters and instituted concierge services with 
reserved seating for his patrons.

Mr. Rimkus, whose Galaxy Theaters owns 101 screens in California, 
Washington and Texas, said that some of the company's theaters were being 
used, during down-time, for church services and college classes. But he 
also recalled a heyday of moviegoing in the 1920's and 30's when, he said, 
theaters were central to American communal life.

"We'll always be tied to the studios," he said, "but we need to serve the 
community as entertainment value, and educational value."

What about the movies themselves? The summer promises the usual 
blockbusters including "Mission: Impossible III," and the Pixar 
computer-animated "Cars." On that, Mr. Frank was clear. "Hollywood has to 
stop making movies out of television shows," he said. "They need to take 
more risks, people want more stories — and they need to make movies for all 
of us."


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu



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